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Company Set Up Procedures in Hong Kong - How to Set Up Your Business in Hong Kong

Guest post by: Lawrence Smith

Article Overview: Hong Kong is the world’s seventh largest Foreign Direct Investment recipient, as stated by the United Nations Conference on Trade and Development (UNCTAD) in 2008. This article affirms why Hong Kong is an attractive location to set up a new company or offshore business, and the procedures involved in doing so. Tax benefits, economic freedom, government stability and reputation are a few of the many reasons why company incorporation in Hong Kong is a prevalent decision.

Company Set Up Procedures in Hong Kong - How to Set Up Your Business in Hong Kong

Hong Kong is popular for investments and offshore company incorporation, having achieved first place in the "Index of Economic Freedom" fifteen years in a row (until 2009). The index takes into account factors such as business freedom, investment freedom, property rights and freedom from corruption. With one of the lowest corporate tax rates in the world (16.5%) and zero tax on foreign sourced income, Hong Kong is also an ideal jurisdiction for tax-efficient business, without being perceived as an international tax haven. Setting up a company in Hong Kong can take as little as 4 working days and with the aid of a professional services firm is relatively simple. The procedure is as follows: • The corporate services firm collects the required due diligence and confirms the required services

• Legal, accounting and tax implications of company incorporation are settled with the professional services firm

• Company name availability is reviewed

• Professional services firm, and the client, discuss and agree optimum required corporate structure for new entity

o This includes the number of shareholders and directors

• Incorporation documents are delivered for signing and returned to corporate service firm for processing

• Service professional handles the business incorporation with the relevant government bodies

• Business incorporation in Hong Kong is complete

After forming a company in Hong Kong, new entities often face other important requirements

in new business set up. These can include opening a corporate bank account, obtaining corporate

and trade finance as well as merchant accounts, and identifying a local office space or virtual office.

World-class multi-currency accounts and internet banking facilities are readily available in Hong

Kong. Entrepreneurs can choose amongst leading international banks that operate in Hong Kong,

to open their corporate bank account for their new Hong Kong business, and will enjoy having no

foreign exchange controls or restrictions on inward and outward investments -a selling point for

operating international business from a Hong Kong office.

Marketing components such as the company website, search engine advertising and the company

logo are other factors that play a major role in the success of a newly set up company.

Setting up a company in Hong Kong can ultimately be seen as a profitable, long-term investment for

any business given the noted tax benefits, ease of incorporation and Hong Kong's position as a

reputable, secure and effective jurisdiction. Furthermore, Hong Kong provides a gateway to China,

the 3rd largest economy in the world.

Minimum requirements to set up business in Hong Kong:

-One shareholder

-One director, any nationality/residence

-Company secretary, either Hong Kong resident or Hong Kong company

-A registered Hong Kong office address

-Auditors, from firm of Hong Kong accountants

-Business Registration Certificate

-One person can act as director, shareholder and secretary, except if sole

director, he/she cannot act as secretary

-No minimum share capital requirements

For further information refer to the Hong Kong Companies Registry.

Related Articles
  Choosing Hong Kong For Company Registration
  Setting Up An Offshore Company In Hong Kong
  Hong Kong Corporate Tax - Explained
  Startup your business in Hong Kong
  How to Set up a Hong Kong Company

Article Tags: attractive location, business in hong kong, company incorporation, decision company, economic freedom, foreign direct investment, government stability, hong kong company incorporation, hong kong incorporation, offshore business, recipient, reputation, set up a company in hong kong, unctad, united nations, united nations conference



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